The state of the nation’s energy industry is strong “even during this time of realignment” amid low crude oil and natural gas prices.

The sixth annual State of American Energy report from the American Petroleum Institute touts the nation’s transition from an era of energy scarcity and dependence “into a global energy leader,” said Jack Gerard, API president and chief executive officer.

“Today, the global energy world is realigning with the United States poised to remain a dominant global player; something unforeseen just a decade ago. The energy policy decisions we make today will determine whether this nation remains a positive and stabilizing force in the world’s energy market and whether consumers can continue to count on reliable, affordable and abundant domestically produced energy for generations,” Gerard said during the event unveiling the annual report, in a speech broadcast over the Internet.

That energy renaissance has not only created what Gerard called an unprecedented energy surplus but resulted in significant consumer savings.

He cited estimates from the Energy Information Administration that U.S. consumers saved, on average $700 a year on transportation fuel costs last year alone. He cited statistics from IHS that said the average U.S. household income rose $1,200 in 2012 thanks to lower energy costs “brought about by unconventional development.” Furthermore, IHS estimates U.S. households could see an additional $3,500 a year in 2025 thanks to lower energy costs, Gerard said.

That growth has been accomplished at the same time the nation has led the world in reducing greenhouse gas emissions, he added.

He continued, “Our nation’s emissions are lower as a result of greater use of clean-burning natural gas. And according to a study by T2 Associates, the oil and natural gas industry itself reduced its own greenhouse gas emissions by the equivalent of 55.5 million metric tons of CO2 in 2014. Further, we have invested $90 billion in zero- and low-carbon emitting technologies from 2000 through 2014, almost as much as the federal government’s investment of $110.3 billion.”

Gerard attributed the industry’s success to what he described as the nation’s unique federal system that allows each state to be active and semi-autonomous in overseeing energy development.

Individual states have demonstrated “time and time again that the best way forward on energy policy is not through legislative mandate, overreaching regulatory oversight or executive branch decree but by using the facts, including what’s worked and what’s best for our energy future, the economy, consumers and the environment as the guiding principle,” he said.

The states demonstrate how bipartisan compromise, consensus building and collaboration with industry can lead to significant increases in energy production and environmental protection., Gerard added.

Even as the industry struggles with low commodity prices in what Gerard called “this period of realignment,” he said the industry continues to be a source of well-paying jobs for millions of Americans. “America’s oil and natural gas industry supports approximately $1.2 trillion in U.S. gross domestic product. For perspective, that is nearly as large as the economy of Mexico, according to the World Bank,” he said.

Whether that economic contribution continues depends on whether pro-energy development or anti-energy development policies dominate, he said.

“Last year a study by Wood Mackenzie found that with the right energy policies, America’s oil and natural gas industry could support as many as an additional 1 million American jobs in 2025 and as many as 2.3 million by 2035. The study also looked at the real-world economic difference between pro-development energy policies and anti-development energy policies espoused by some. Specifically, over the next 20 years pro-development policies could cumulatively increase local, state and federal government revenue by more than $1 trillion and boost household discretionary income by as much as $508 billion; further, average annual household energy expenses could be lowered by approximately $360 per year.

“Conversely, national energy policies that discourage energy development and constrain U.S. refiners could lead to a cumulative decrease of $500 billion in government revenue from 2016 to 2035 and increase by $242 the cost of energy annually for the average household,” Gerard said.

He criticized recent policies he placed in the anti-energy development category, such as denying the Keystone XL pipeline, continuation of the Renewable Fuel Standard and the proposed Clean Power Plan.

Denying the Keystone XL pipeline will actually result in 42 percent higher emissions as Canadian oil sands are sent to refineries via truck, train and barge, he said, citing U.S. State Department reports.

He called the Renewable Fuel Standards a relic of the nation’s period of energy scarcity and dependence that should be repealed because consumers show very little demand for high ethanol fuels, which are actually less efficient that gasoline. In addition, industry innovation and market forces have already accomplished the standard’s goals of lower gasoline use and lower emissions.

“Another example is the Clean Power Plan, which under the guise of environmental protection, does in fact, seek to pick winners and losers in the energy market, not based on market conditions, consumer preference or economic reality. The reality is that the approach of the rule is to propose a regulation-based solution for a problem that is already being successfully addressed in the marketplace,” Gerard stated.

He decried what he called a White House talking point bragging that the Clean Power Plan eliminates the rush to natural gas.

“In 2015 there were several months in which natural gas produced more electricity than any other fuel for the first time in U.S. history. By no coincidence, that period also saw the lowest carbon emissions from the power sector. And far from reducing opportunity for wind and solar power, natural gas provides the reliable base load power necessary to integrate those intermittent sources. States and electric utilities are required to provide clean, reliable and affordable energy. Natural gas will continue to provide all three, with or without the Clean Power Plan, he said.

Fossil fuels, from crude to natural gas to coal, will account for 80 percent of the nation’s energy consumption through 2040, said Gerard, citing an Energy Information Administration report. “And the agency estimates that even under the best-case scenario for alternative fuel use, fossil fuels will still account for 78 percent of our energy needs.

“Still and in spite of all of these facts and a wealth of other evidence to the contrary, there are an ardent few who continue to believe that keeping our nation’s abundant energy resources in the ground is a credible and viable national energy strategy. There are some in government who will advance their favored forms of energy to that dubious and untested end, heedless of the potential harm it could cause to our economy or how much it could cost the American consumer or how it could impede continued environmental improvement.”

These examples “underscore not only how energy policy affects energy production, but also how changes in energy production affect the lives and livelihoods of us all. And that highlights a central fact that is often lost in the energy policy debate - that energy from fossil fuels is and for decades to come will be fundamental to our society - and as a result, the policies we put into place in that area will have repercussions beyond the wellhead, pumping station or refinery. They have real-world impacts on American families, small businesses, our environment and communities,” Gerard said.

As the nation prepares to elect a new president in November, he expressed hope that President Obama will spend his last year in office noting that the already heavy regulatory burden - almost 100 pending regulations and counting - upon the oil and natural gas industry could hinder, rather than advance what he hopes to be one of his administration’s defining legacies, environmental improvement.

He also expressed hope that the newly-elected president, “whoever he or she is,” will choose to continue the United States’ positive role of energy abundance, global leadership, domestic economic opportunity and environmental improvement rather than dismantle the nation’s progress by implementing policies borne from political ideology and unmoored to science or to fact.

“Our goal is to keep the positive momentum of the last few years and to end the politicization of energy for petty partisan ends. We want to foster a national energy policy discussion that remains above the partisan fray, and immune from the misinformation campaign deployed by fervid critics of fossil fuels. Because the reality is that, no single source of energy will alone solve our problems or is the source of all of our woes. Moreover, no group holds all of the answers or the solution to the challenges we face. What history has taught us is that America prospers most when we work together for the common good.,” Gerard said.